EXHIBIT 99.4 NIPSCO INDUSTRIES, INC. COMPUTATION OF PER SHARE EARNINGS TWELVE MONTHS ENDED DECEMBER 31, 1996 =============================================================================== FULLY PRIMARY DILUTED ---------- ---------- Weighted Average Number of Shares Average Common Shares Outstanding at 12/31/96.... 61,190,750 61,190,750 Dilutive Effect for Nonqualified Stock Options at 12/31/96...................................... 238,218 273,299 ---------- ---------- Weighted Average Shares at 12/31/96.............. 61,428,968 61,464,049 ========== ========== Net Income to be Used to Compute Earnings Per Average Common Share (DOLLARS IN THOUSANDS) Net Income....................................... $176,734 $176,734 Dividend Requirements on Preferred Shares........ 119 119 -------- -------- Balance Available for Common Shareholders........ $176,615 $176,615 ======== ======== Earnings Per Average Common Share.................. $ 2.88(a) $ 2.87(a) ======== ======== - -------- Note: (a) This calculation is submitted in accordance with Regulation S-K item 601(b)(11) although not required by footnote 2 to paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%. =============================================================================== 1 EXHIBIT 99.4 NIPSCO INDUSTRIES, INC. COMPUTATION OF PER SHARE EARNINGS TWELVE MONTHS ENDED DECEMBER 31, 1995 ================================================================================ FULLY PRIMARY DILUTED ---------- ---------- Weighted Average Number of Shares Average Common Shares Outstanding at 12/31/95.... 63,281,177 63,281,177 Dilutive Effect for Nonqualified Stock Options at 12/31/95...................................... 217,756 389,346 ---------- ---------- Weighted Average Shares at 12/31/95.............. 63,498,933 63,670,523 ========== ========== Net Income to be Used to Compute Earnings Per Average Common Share (DOLLARS IN THOUSANDS) Net Income....................................... $ 175,465 $ 175,465 Dividend Requirements on Preferred Shares........ 3,063 3,063 ---------- ---------- Balance Available for Common Shareholders........ $ 172,402 $ 172,402 ========== ========== Earnings Per Average Common Share.................. $ 2.72(a) $ 2.71(a) ========== ========== - -------- Note: (a) This calculation is submitted in accordance with Regulation S-K item 601(b)(11) although not required by footnote 2 to paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%. =============================================================================== 2 EXHIBIT 99.4 NIPSCO INDUSTRIES, INC. COMPUTATION OF PER SHARE EARNINGS TWELVE MONTHS ENDED DECEMBER 31, 1994 ================================================================================ FULLY PRIMARY DILUTED ---------- ---------- Weighted Average Number of Shares Average Common Shares Outstanding at 12/31/94.... 64,820,039 64,820,039 Dilutive Effect for Nonqualified Stock Options at 12/31/94........................................ 134,775 136,688 ---------- ---------- Weighted Average Shares at 12/31/94.............. 64,954,814 64,956,727 ========== ========== Net Income to be Used to Compute Earnings Per Average Common Share (DOLLARS IN THOUSANDS) Net Income....................................... $ 163,987 $ 163,987 Dividend Requirements on Preferred Shares........ 3,063 3,063 ---------- ---------- Balance Available for Common Shareholders........ $ 160,924 $ 160,924 ========== ========== Earnings Per Average Common Share.................. $ 2.48(a) $ 2.48(a) ========== ========== - -------- Note: (a) This calculation is submitted in accordance with Regulation S-K item 601(b)(11) although not required by footnote 2 to paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%. =============================================================================== 3